The development ministry is drafting a change in rules where in to ease the flow of FDI in the real estate market the develpers are going to be exempted from the norms of minimum capitalisation and minimum builtup area.

A mixed development project can include townships, housing, commercial premises, hotels, multiplexes and recreational facilities. The government is seeking to exempt such projects from the $10 million requirement, reduce the project size to 10 acres and cut the minimum built up area to 10,000 square feet. The FDI brought to these projects will continue to have a lock-in of three years now after the date of completion of the projects. the developers of these projects will have to keep at least 50 per cent of the total built up area for hotel and tourism related activities and ensure the project is regulated by the concerned authority and residential buildings are not misused for non-residential purposes